Regardless of how it was measured, the gender pay gap was larger among employees age 40 and over. Image: Hyejin Kang/Shutterstock.com
By: FEDweek StaffFollowing is the summary of a recent EEOC study citing reasons—such as differences in levels of education and years of experience in federal employment—for the pay gap by gender being wider at higher ages in federal agencies.
The U.S. Equal Employment Opportunity Commission (EEOC) enforces laws that prohibit gender discrimination and discrimination against workers age 40 and over. Previous research has found that gender pay inequality varies by age in the general population (Aragão, 2023; Chamberlain, 2016). However, the EEOC could not find any previous research focusing on how gender pay inequality varies by age within the Federal workforce.
To fill this gap, the EEOC examined data on over two million Federal employees to answer two questions:
• Does the gender pay gap in the Federal workforce differ for people under age 40 as compared to people age 40 and over?
• How do factors associated with the gender pay gap (e.g., human capital and occupation) differ for these age groups?
Main Findings
Using statistical regressions, the EEOC measured gender pay gaps for Federal workers under age 40 and age 40 and over. This included the overall gross pay gap, the human capital-controlled pay gap (which accounts for personal characteristics and human capital), and the within-job pay gap (which further accounts for workplace geography, agency, and occupation). The EEOC also measure how gender differences in key attributes and rewards explained the gender pay gap in each age group.
The main findings from these analyses include:
• Regardless of how it was measured, the gender pay gap was larger among employees age 40 and over.
• In the younger age group, Federal work experience was the most influential attribute, increasing the gender pay gap by $2,105 annually or 2.9 cents on the dollar on average. Pay generally increases with experience, and the average man under age 40 had about 1.1 more years of federal work experience than their female counterparts. Occupation was the second most influential attribute at $1,153 annually or 1.6 cents on the dollar.
• In the older age group, occupation was the most influential attribute ($2,005 annually or 2.1 cents on the dollar), followed by Federal work experience ($743 annually or 0.8 cents on the dollar).
• Gender distribution differences by agency contributed 1.0 cents on the dollar ($742 annually) to the pay gap of women under age 40 and 0.5 cents on the dollar ($461 annually) to the pay gap of women over age 40.
• Among the younger age group, educational attainment was the attribute most associated with decreasing the gender pay gap, decreasing it by $1,665 annually or -2.3 cents on the dollar.
• Veteran status also helped decrease the gender pay gap by $1,157 annually (-1.6 cents on the dollar) for the younger group and by $1,314 annually (-1.4 cents on the dollar) for the older group.
• In both age groups, age was the attribute for which rewards most favored men over women, increasing the gender pay gap by $2,420 annually (3.4 cents on the dollar) for those under age 40 and by $10,534 annually (11.2 cents on the dollar) for those over age 40.
• In the older age group, rewards to occupation ($1,572 annually or 1.7 cents on the dollar) and education ($466 annually or 0.5 cents on the dollar) were also significantly associated with a larger gender pay gap.
Recommendations
Based on the above findings, the EEOC recommends the following:
• Federal agencies should make efforts to identify and address barriers creating gender differences in occupation, which are greater among workers age 40 and over.
• Governmentwide initiatives to eliminate gender pay inequities should target the agencies with the largest gender pay gaps.
• Additional research should seek to identify the personnel practices and occupations most associated with gender pay differences across age groups in the Federal sector.
Research often has found that employment inequities are more severe for certain groups who have multiple, intersecting characteristics—for example, older women. Focused recruitment and outreach efforts may help reduce pay inequities, allowing agencies to better focus their efforts and resources where they are needed most. The EEOC will continue to support stakeholders in achieving greater equal employment opportunity.
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